June 30, 2017 / 5:58 AM / 5 months ago

Unipol reorganises group insurance business, sets up bad bank

MILAN, June 30 (Reuters) - Italy’s Unipol said on Friday it had approved a reorganisation of its insurance and banking businesses that will knock around 17 percentage points off the Solvency II ratio of its main insurance unit UnipolSai .

The insurance group also said it would transfer 3 billion euros of bad loans from its banking unit Unipol Banca to a special vehicle, writing down the value of the loans, which the market currently prices at 20 cents on the euro.

Unipol said the reorganisation would have a negative impact on the group’s consolidated results to the tune of about 780 million euros $891 million) but added this would be offset by capital gains from the sale of two insurance units to its UnipolSai.

The group also said UnipolSai had terminated its bancassurance joint venture with Banco BPM. ($1 = 0.8752 euros) (Reporting by Stephen Jewkes)

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